Bendigo and Adelaide Bank (“BEN”) today announced an offer of new Converting Preference Shares 4 (“CPS4”), which are expected to be quoted on the Australian Securities Exchange (“ASX”) and trade under the ASX code “BENPG”.
BEN intends to raise approximately $300 million through the offer of CPS4, with the ability toraise more or less (the “Offer”). CPS4 are being issued to support BEN’s balance sheet growth and to ensure BEN continues to have strong regulatory capital levels, with the proceeds available to be used to fund the redemption of BEN’s Convertible Preference Shares (ASX ticker code: BENPD) (“CPS”) and for general corporate purposes.
CPS4 are fully paid, non-cumulative, perpetual, converting preference shares and will qualify as Additional Tier 1 Capital under APRA’s Basel III capital adequacy framework.
CPS4 will provide investors with floating rate, quarterly, discretionary, non-cumulative dividends that are expected to be fully franked. The Margin is expected to be in the range of 3.75 per cent to 3.95 per cent, and will be set by way of Bookbuild to be conducted on or around 23 October 2017. Based on the expected Margin and assuming a 90 day Bank Bill Rate of 1.705 per cent, the Dividend Rate on CPS4 would be equivalent to an unfranked Dividend Rate of between 5.455 per cent and 5.655 per cent per annum which is equivalent to a fully franked cash Dividend Rate of between 3.819 per cent and 3.959 per cent.
If certain conditions are met (including APRA’s prior written approval), BEN may elect to redeem, resell or convert CPS4 into Ordinary Shares of BEN on 13 June 2024. Otherwise, CPS4will mandatorily convert into Ordinary Shares of BEN on 15 June 2026 (subject to certain conditions being satisfied or unless exchanged earlier). CPS4, in accordance with their terms of issue, are subject to automatic conversion into Ordinary Shares of BEN upon the occurrence of a Non-Viability Trigger Event or Capital TriggerEvent.
The Offer comprises:
- a Reinvestment Offer to Eligible CPS Holders – being registered holders of CPS with a registered address in Australia at 7:00pm (Melbourne time) on 12 October 2017 (see further details below);
- a Securityholder Offer to Eligible Securityholders – being registered holders of Ordinary Shares, CPS2, CPS3 or Capital Notes with a registered address in Australia at7:00pm (Melbourne time) on 12 October 2017;
- a Broker Firm Offer to Broker Firm Applicants including Eligible CPS Holders – being Australian resident retail clients of a Syndicate Broker; and
- an Institutional Offer to Institutional Investors – being certain Institutional Investors invited by the Joint Lead Managers to participate in the Offer.
The Reinvestment Offer and Securityholder Offer are expected to close at 5:00pm (Melbourne time) on 1 December 2017.
The Broker Firm Offer for applications in respect of Reinvested CPS is also expected to close at 5:00pm (Melbourne time) on 1 December 2017 and the Broker Firm Offer for all other applications excluding those in respect of Reinvested CPS is expected to close at 10:00am (Melbourne time) on 12 December 2017.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.